The following information is available for Wilson Trailer Company, which sells two products:
$$\begin{array} { l c c }
& \text { Trailer A } & \text { Trailer B } \
\text { Pracessing time } & 2 \text { hours } & 4 \text { hours } \
\text { Vinyl cover used } & 16 \text { s. metres } & 12 \text { sq. metres } \
\text { Selling price } & \$ 50.00 & \$ 80.00 \
\text { Variable cost } & \$ 35.00 & \$ 50.00 \
\text { Fixed cost } & \$ 10.00 & \$ 20.00
\end{array}$$ There are 100 hours available in the plant and 75 square metres of vinyl available per operating period.
-Refer to the figure.Which statement best describes the relationship between these products?
A)The materials constraint favours Trailer B over Trailer A.
B)The time constraint favours Trailer B over Trailer A.
C)The material constraint favours Trailer A over Trailer B.
D)The objective function favours Trailer A over Trailer B.

Question

The following information is available for Wilson Trailer Company, which sells two products:
$$\begin{array} { l c c } 
& \text { Trailer A } & \text { Trailer B } \
\text { Pracessing time } & 2 \text { hours } & 4 \text { hours } \
\text { Vinyl cover used } & 16 \text { s. metres } & 12 \text { sq. metres } \
\text { Selling price } & \$ 50.00 & \$ 80.00 \
\text { Variable cost } & \$ 35.00 & \$ 50.00 \
\text { Fixed cost } & \$ 10.00 & \$ 20.00
\end{array}$$ There are 100 hours available in the plant and 75 square metres of vinyl available per operating period.
-Refer to the figure.Which statement best describes the relationship between these products?
A)The materials constraint favours Trailer B over Trailer A.
B)The time constraint favours Trailer B over Trailer A.
C)The material constraint favours Trailer A over Trailer B.
D)The objective function favours Trailer A over Trailer B.

Quizplus · Accepted Answer

Trailer B requires less time to produce than Trailer A (70 hours vs 80 hours). However, Trailer B requires more vinyl than Trailer A (30 square metres vs 25 square metres). Since there are only 75 square metres of vinyl available per operating period, the material constraint (i.e. availability of vinyl) favours Trailer A over Trailer B. Therefore, the statement that best describes the relationship between these products is "The materials constraint favours Trailer A over Trailer B."

The Following Information Is Available for Wilson Trailer Company, Which